Rio Tinto and Glencore have confirmed that they are in talks over a potential takeover that could create the world's largest mining group, with a combined valuation of close to $207bn.
The companies say that the proposed deal would entail Rio Tinto making an all-share acquisition of "all or part" of Glencore. No details have been provided on any takeover premium or on the combined group's governance. This is the second such attempt in just over a year: in 2024, Glencore had already approached Rio Tinto - unsuccessfully. Under standard terms, discussions remain preliminary and there is no guarantee that they will result in a deal.
More appreciated for Glencore than for Rio Tinto
News of the talks sent Glencore's Wall Street-listed shares up 6%, while Rio Tinto's stock fell by about the same (-6.3%) in Sydney, its steepest intraday drop since July 2022. Some analysts fear that the group, which would be the acquiring entity, could pay too much for Glencore. Under UK takeover rules, Rio Tinto has until February 5 to make a firm offer or walk away.
"This comes as no surprise and this scenario has long been supported by AlphaValue," the French broker said. "Moreover, with BHP on the back foot after several unsuccessful attempts to buy Anglo American, the timing seems ideal for Rio and Glencore to join forces and finally establish themselves as the new global number one in diversified mining," it added.
Rio Tinto plc is one of the world's leaders in mining research, prospecting and operating. Net sales break down by family of products as follows:
- iron ore (57.4%): 287.7 Mt produced in 2024;
- aluminum, alumina and bauxite (24.2%): 58.6 Mt bauxite, 7.3 Mt alumina and 3.3 Mt aluminum produced;
- copper (8.8%) : 624 Kt produced;
- industrial minerals (5%): titanium dioxide pigments (990 Kt produced), borates (504 Kt produced) and salts (5.8 Mt produced);
- gold (1.5%) : 282,000 ounces produced;
- diamonds (0.5%) : 2.8 million carats produced;
- other (2.6%): uranium, silver, zinc and molybdenum.
Net sales are distributed geographically as follows: the United Kingdom (0.3%), Europe (4.8%), China (57.4%), Japan (6.5%), Asia (6.9%), the United States (16.8%), Canada (2.9%), Australia (2%) and other (2.4%).
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